RBOHA - Rabobank Prefernce Shares

[Xerof]

Never say never, but Rabo would be the last bank standing globally IMO - they are a pretty unusual bunch, with impeccable credit standards.

I know what everyone is saying: all Nan is concerned about is an annuity stream. My point is if she ever needed to bail out for any reason, she is currently down the dunny, in a matter of mere weeks from (virtual) entry

[Lizard]

I know what everyone is saying: all Nan is concerned about is an annuity stream. My point is if she ever needed to bail out for any reason, she is currently down the dunny, in a matter of mere weeks from (virtual) entry

The difficulty is, where isn't that the case with income? It just isn't possible to get a liquid investment that you can be certain of being able to withdraw funds from without opting for a call account of some sort, and the returns just aren't there for most peoples income needs. Always going to be a balancing act between risk, return and liquidity - not to mention hidden costs and returns around inflation vs deflation.

But yes, I guess you are right in pointing out that the market value on price-traded perpetuals/resets is probably more volatile than for most yield-traded fixed rate bonds over a short period.

[Xerof]

Well, the market keeps talking - Nans (virtual) investment keeps getting hammered in price, now down another 3.5 cents since last week.

Far more volatile than your regular fixed term bonds, most of which have barely blinked (yet).

[Xerof]

Can't buy a trick these Perpetuals......Nan's buried......

For wonderful spin, take a read of their announcement today, where they were DOWNGRADED from AAA to AA

Rabobank retains its position as the world’s highest rated
privately owned bank according to Standard & Poor’s new
methodology
Rating agency Standard & Poor’s (S&P) today announced its new ratings for the top 37 global banks according to its new methodology. S&P has awarded Rabobank the highest rating of all these 37 banks: AA with a ‘stable outlook’.
Rabobank previously held a AAA rating based on the former approach used by S&P. As is the case at Moody’s, Fitch and DBRS, Rabobank remains the highest rated privately owned bank in
the world according to S&P. Rabobank views S&P’s new rating as a reconfirmation of its stability and strong creditworthiness.

They must use the same firm as Heartland.......

[GTM 3442]

Personally, I'm surprised at the way the price has held up. Percieved premium for quality ?

[macduffy]

Rabobank has given notice of its intention to redeem the RBOHA capital securities on 9 October 2017, the first business day following the "First Call Date". I assume they are pre-empting an anticipated interest rate rise at the next rate reset, but at the current rate of 2.8825% I'm more than happy to have my small holding repaid.

[peat]

Rabobank has given notice of its intention to redeem the RBOHA capital securities on 9 October 2017, the first business day following the "First Call Date". I assume they are pre-empting an anticipated interest rate rise at the next rate reset, but at the current rate of 2.8825% I'm more than happy to have my small holding repaid.

yeh didnt quite make sense to me either macduffy.
they could buy them on market for less, and yet they chose to pay par.